The impressive four-fold increase in ICICI Bank’s stock price since 2018 reflects investors’ growing confidence in the private lender, particularly since Sandeep Bakhshi assumed leadership from Chanda Kochhar.
ICICI Bank swiftly denied reports of Managing Director Sandeep Bakhshi expressing any inclination to depart, as detailed by The Morning Context. This swift response managed to prevent any significant decline in the stock during today’s trading session. Despite this, ICICI Bank’s stock concluded 1 percent lower at Rs 1,139 per share on May 2.
However, analysts underscored the potential market impact of such news, noting it could adversely affect sentiment towards ICICI Bank.
The remarkable journey of ICICI Bank’s stock, soaring from Rs 355 per share in October 2018 to a steady Rs 1,152 currently, signifies investors’ trust in the private lender, particularly following Sandeep Bakhshi’s assumption of leadership from Chanda Kochhar. Under his stewardship, ICICI Bank outpaced SBI, the nation’s largest bank by size, in terms of market capitalization.
Sandeep Bakhshi took the helm at ICICI Bank during a challenging period on October 15, 2018, transitioning from his role as a whole-time director and chief operating officer of the bank. His appointment followed predecessor Chanda Kochhar’s departure amidst money laundering allegations, which had severely dented investor confidence. Bakhshi’s leadership propelled ICICI Bank from the third-largest lender in India by market capitalization to the second-largest, trailing only HDFC Bank.
ICICI Bank’s market capitalization surged to Rs 8.09 lakh crore in 2024 from Rs 2.01 lakh crore in 2018, surpassing State Bank of India’s Rs 7.36 lakh crore market capitalization, according to Bloomberg data. The stock also witnessed a remarkable rally, delivering over 200 percent returns over six years.
“Bakhshi has demonstrated exceptional leadership over the past six years. He has revitalized retail lending, expanded the bank’s footprint across regions, enhanced profitability, and reduced non-performing assets,” remarked Jignesh Shial, Director of Research and Head of BFSI Sector at InCred Capital.
Dnyanada Vaidya, BFSI Research Analyst at Axis Securities, concurred, highlighting ICICI Bank’s favorable risk-reward metrics since 2018 and its consistent all-round performance across operational metrics.
SOURCE: https://www.moneycontrol.com/news/business/markets/why-sandeep-bakhshis-exit-from-icici-bank-may-knock-off-the-street-12713241.html
